BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 37
                                                                  Page 1

          Date of Hearing:  April 15, 2013

                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES
                                Wesley Chesbro, Chair
                     AB 37 (Perea) - As Amended:  March 18, 2013
           
          SUBJECT  :  California Environmental Quality Act:  record of  
          proceedings

           SUMMARY  :  For certain projects and upon a project applicant's  
          request, authorizes a lead agency to prepare concurrently with  
          the administrative process the record of proceedings that would  
          be used in a judicial challenge to an agency's action or  
          decision under the California Environmental Quality Act (CEQA).

           EXISTING LAW:  

          1)Requires a lead agency to prepare and certify the completion  
            of an environmental impact report (EIR) for a proposed project  
            that it finds would have a significant effect on the  
            environment, or if it finds otherwise, adopt a negative  
            declaration (ND), or mitigated negative declaration.

          2)Authorizes a judicial challenge to an agency's act or decision  
            on the grounds of noncompliance with CEQA, including an  
            improper determination that a project is not subject to CEQA  
            or the failure to prepare an EIR for a project that has a  
            significant effect on the environment.

          3)Establishes that a record of proceeding includes, but is not  
            limited to, all application materials, staff reports,  
            transcripts or minutes of public proceedings, notices, written  
            comments, and written correspondence prepared by or submitted  
            to the public agency regarding the proposed project.

          4)Establishes a procedure for the preparation, certification,  
            and lodging of the record of proceedings.  Specifically, the  
            law:

             a)   Requires a plaintiff or petitioner to file a request  
               that the respondent public agency prepare the record of  
               proceedings, and serve this request, together with the  
               complaint or petition, personally upon the public agency  
               within 10 days of the date the action or proceeding was  
               filed.








                                                                  AB 37
                                                                  Page 2


             b)   Requires the respondent public agency to prepare and  
               certify the record of proceedings not later than 60 days  
               from the date that plaintiff or petitioner served the  
               request; lodge a copy of the certified record with the  
               court; and serve on the parties a notice that the record of  
               proceedings has been certified and lodged with the court.

             c)   Authorizes the plaintiff or petitioner to prepare the  
               record subject to certification by the respondent public  
               agency, or the parties to agree to an alternative method of  
               preparing the record of proceedings, within the time limits  
               specified in the law.

             d)   Requires the parties to pay any reasonable costs or fees  
               imposed for the preparation of the record of proceedings in  
               conformance with any law or rule of court.

             e)   Authorizes the plaintiff or petitioner to move the court  
               for sanctions, and the court to grant the plaintiff or  
               petitioner's motion for sanctions, if the public agency  
               fails to prepare and certify the record within the time  
               limits specified in the law.

           THIS BILL  :

          1)Authorizes a lead agency to prepare the record of proceedings  
            for certain projects concurrently with the administrative  
            process, upon written request of a project applicant received  
            no later than 30 days after that lead agency makes a  
            determination pursuant to any of the following:

             a)   An EIR, ND or mitigated ND is required for a project.

             b)   The significant environmental effects specific to an  
               infill project were not described or are more significant  
               than originally described in a prior EIR.

             c)   A transit priority project, which meets specified  
               environmental and affordable housing criteria, is a  
               sustainable communities project pursuant to SB 375  
               (Steinberg, 2008).

          2)In preparing the record of proceedings, requires a lead agency  
            to:








                                                                  AB 37
                                                                  Page 3


             a)   Beginning with the date of the release of the draft  
               environmental document for certain projects, make all  
               documents and other materials that would be placed in the  
               record of proceedings available on and downloadable from a  
               website maintained by the lead agency, or provide a link on  
               the lead agency's website to another website containing the  
               materials.

             b)   Make available online to the public and in an accessible  
               electronic format: 

               i)     The draft environmental document and all other  
                 documents submitted to, cited by, or relied upon by the  
                 lead agency in preparing the draft environmental  
                 document.

               ii)    Any document prepared by the lead agency or  
                 submitted by the applicant after the date of the release  
                 of the draft environmental document that is part of a  
                 record of the proceedings, within five business days  
                 after the document is received or released by the lead  
                 agency.

             c)   Encourage the submission of written comments on the  
               project in a readily accessible electronic format and make  
               any comment available to the public within five days of  
               receipt, unless the comment is submitted less than five  
               days prior to the decision on the project.

             d)   Convert written comments received in a non-electronic  
               format to a readily accessible electronic format within  
               seven business days of receipt, unless the comment is  
               submitted less than seven days prior to the decision on the  
               project.

             e)   Certify the record of proceedings within 30 days after  
               the filing of a notice of determination filed with the  
               Office of Planning and Research (OPR) or the county clerk.

          3)Specifies that disclosure is not required for a trade secret,  
            the location of an archaeological site or sacred land, or any  
            other information subject to the disclosure restrictions in  
            the California Public Records Act. 









                                                                  AB 37
                                                                  Page 4

          4)Requires the project applicant to reimburse the lead agency  
            for the costs incurred in complying with the above  
            requirements.

          5)Applies the above requirements to the preparation of records  
            of proceedings for projects determined to be of statewide,  
            regional, or areawide environmental significance; infill  
            projects for which an EIR was certified for a city or county's  
            planning level decision; a project implementing a sustainable  
            communities strategy pursuant to SB 375; or any other project  
            for which the lead agency consents to prepare the record of  
            proceedings pursuant to the above requirements.

          6)Sunsets the above requirements on January 1, 2017.

           FISCAL EFFECT  :  Unknown

           COMMENTS  :   

           1)Background  .  Before approving a discretionary project, a lead  
            agency spearheads the following three-step environmental  
            review process under CEQA:  first, establish that the proposal  
            is a "project" for the purposes of the law; second, determine  
            whether the proposed project is exempt from CEQA's  
            requirements; and third, identify any significant  
            environmental impacts caused by the project.  If there are no  
            significant impacts, the lead agency may file a negative  
            declaration or mitigated negative declaration and approve the  
            project.  Meanwhile, a finding of significant environmental  
            impacts triggers a lead agency's responsibility to prepare an  
            EIR that would analyze those impacts.  

            Over the course of the environmental review process, lead  
            agencies prepare notices of actions or decisions undertaken,  
            written statements of findings, and staff reports or  
            recommendations that are usually also subject to public  
            comment.  These materials, which document the agency's  
            compliance with the CEQA process, later form the record of  
            proceedings used in CEQA challenges.

           2)Expedited judicial review of CEQA cases  .  CEQA authorizes  
            judicial challenges to an agency's action or decision for  
            failure to comply with CEQA process.  To ensure fair and  
            prompt resolution, both trial and appellate courts are  
            required by statute to give CEQA cases calendar preference in  








                                                                  AB 37
                                                                  Page 5

            setting hearings or trials.  CEQA cases are subject to  
            statutes of limitation as short as 30-35 days, depending on  
            the type of agency action challenged.  Moreover, superior  
            courts sitting in jurisdictions with populations of over  
            200,000 residents are required to designate one or more judges  
            that would develop expertise in CEQA and related land-use or  
            environmental laws.

            Courts rely on the record of proceedings to evaluate whether  
            an agency action or decision failed to comply with CEQA  
            process.  Usually, a record is prepared after a CEQA case is  
            filed in court.  In 2011, the Legislature enacted two bills  
            that authorized a lead agency to prepare and certify the  
            record of proceedings concurrently with the administrative  
            process and required the project applicant to reimburse the  
            lead agency for those costs.  AB 900, the Jobs and Economic  
            Improvement Through Environmental Leadership Act of 2011,  
            applied to large-scale projects meeting extraordinary  
            environmental standards and providing significant jobs and  
            investment.  SB 292 (Padilla) applied to a proposed downtown  
            Los Angeles football stadium and convention center achieving  
            specified traffic and air quality mitigations.

           3)This bill would allow project applicants and lead agencies to  
            anticipate and prepare for CEQA litigation  .  Describing the  
            need for this bill, the author states that "(d)uring  
            legislative deliberations on (AB 900 and SB 292), all  
            stakeholders agreed that the opportunity to have the  
            administrative record prepared earlier than current law  
            required would expedite the judicial process.  In fact, some  
            parties believe that preparation of the record delays judicial  
            review more than any other factor."  

            Litigants, especially project applicants who know or have good  
            reason to believe that their proposed developments may be  
            challenged in court, would primarily benefit from having a  
            record of proceedings prepared concurrently with the  
            administrative process.  Having a record ready and available  
            upon the filing of a CEQA lawsuit would allow a court to set a  
            case for hearing at the soonest possible time.  This could  
            reduce uncertainty and costs.  

            The general public would also benefit from the bill's  
            requirements to post CEQA notices, reports, environmental  
            documents, and public comments online.  Especially for large  








                                                                  AB 37
                                                                  Page 6

            and controversial projects, the ability to access information  
            about the project and the ongoing CEQA process would enrich  
            discussions and contribute to informed decision-making.   
            Project applicants would also reimburse lead agencies for the  
            costs they incur in complying with the online posting  
            requirements, reducing the burden for lead agencies.

            The committee may wish to consider that the online posting  
            requirements could be duplicative of similar requirements in  
            other bills proposed during this session.  AB 380 (Dickinson),  
            which this committee passed on April 1, 2013, requires OPR to  
            post online CEQA notices submitted by lead agencies.   

           4)Related legislation  .  This bill is substantially similar to SB  
            984 (Simitian, 2012), which was contingent on the enactment of  
            AB 1570 (Perea, 2012).  Neither bill was enacted.  This bill  
            would also amend similar sections and provisions as SB 617  
            (Evans), which is currently pending before the Senate  
            Environmental Quality Committee.

           REGISTERED SUPPORT / OPPOSITION  : 

          Support 
           
          American Council of Engineering Companies, California
          American Building Industry Association
          American Planning Association, California Chapter
          California Business Properties Association
          California Chamber of Commerce
          California Grocers Association
          City of Fowler
          City of Selma
          Civil Justice Association of California

           Opposition 
           
          None on file

           
          Analysis Prepared by  :  Melissa Sayoc / NAT. RES. / (916)  
          319-2092 












                                                                  AB 37
                                                                  Page 7